Millions in Unclaimed Checks Discovered in Pennsylvania

Unclaimed Checks

Pennsylvania is set to receive over $20 million in unclaimed property following a pivotal U.S. Supreme Court settlement.

At a Glance

  • Pennsylvania will receive over $20 million in unclaimed property.
  • The Supreme Court ruled that uncashed MoneyGram official checks should be returned to their state of purchase.
  • The case, initiated in 2016, led to a settlement paying out over $190 million to various states.
  • Pennsylvanians can file claims with the Pennsylvania Treasury Department.

Supreme Court Ruling in Delaware v. Pennsylvania et al.

The U.S. Supreme Court ruled in favor of Pennsylvania, determining that uncashed MoneyGram official checks should be returned to the state where they were purchased. This decision affects unclaimed financial instruments previously held by Delaware since MoneyGram is incorporated there. The court’s ruling potentially impacts hundreds of millions of dollars across multiple states.

The financial ruling represents the first significant decision on unclaimed property law in nearly 30 years. This settlement will see Delaware paying over $20 million to Pennsylvania alone. The court’s decision reaffirms the principle that such monetary instruments should return to the states where consumers made purchases.

Breakdown of Payments and History of the Case

Delaware agreed to a settlement that will send back over $20 million to Pennsylvania. The total settlement amount includes $6,256,096 remitted by MoneyGram in April 2024 and approximately $14 million covering transactions dating back to 2011. Initiated by Pennsylvania in 2016, the case escalated to the Supreme Court due to its jurisdiction over state disputes.

Special Master Judge Pierre N. Leval ruled in Pennsylvania’s favor in May 2021. The Supreme Court unanimously upheld this decision in February 2023. Concluding nearly eight years of litigation, the settlement will distribute over $190 million to multiple states which were part of the lawsuit.

Pennsylvania’s Next Steps: Claims and Returns

Pennsylvanians who purchased uncashed MoneyGram official checks since January 1, 2011, can file a claim with the Pennsylvania Treasury Department. The best evidence for claims includes a receipt showing the amount, purchase location, and the date it was purchased.

“This is a huge win for Pennsylvania consumers, and the right standard has been set for the future,” said State Treasurer Stacy Garrity. “The U.S. Supreme Court agreed with us that these checks should be returned to the states where they were purchased, and this settlement is the first step in getting that money back into the right hands. I’m proud of the legal team here at Treasury for leading the successful effort to establish this important precedent in national unclaimed property law.”

Pennsylvania Treasury faces the challenge of identifying the rightful owners of the unclaimed money. Treasurer Stacy Garrity pledged to return as much of the funds to Pennsylvanians as possible. Her department, represented by Chief Counsel Christopher B. Craig and Joshua J. Voss of Kleinbard LLC, led the successful legal effort.

The Future of Unclaimed Property Law

Further bolstering the effort, Pennsylvania is implementing the Money Match program to automate returns of property valued under $500. The program will begin in mid-January, with the first batch of checks expected by the end of February. If successful, the Treasury Department plans to raise the value limit of automated returns to $5,000 and then $10,000.

“We’re gonna be ready to send out the first batch of confirmation letters immediately, then send the first batch of Money Match checks by the end of February, then every quarter,” Garrity said. “I think it’ll end up being $10-$20 million a year.”

This Supreme Court decision sets a significant precedent in unclaimed property law. The ruling affirms that uncashed financial instruments should be escheated to the state of purchase. Delaware’s initial refusal to amicably resolve the dispute in 2014 will now boost the coffers of various states, reaffirming consumer rights across the nation.

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